Two Plaintiffs File FDCPA Suit Against Client Services

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Client Services, Inc. is facing a proposed class action lawsuit filed by two plaintiffs who allege the debt collector violated the Fair Debt Collection Practices Act.

The first plaintiff says she received a collection letter from the defendant containing the following text:

“We are offering you a settlement amount of $550.00, to settle this CHASE BANK USA, N.A. account for less than the balance due.”

The suit argues this language is misleading because it can be interpreted in two ways: that Client Services will accept $550 to settle the account, or that it will accept an amount reduced by $550, for a total balance of $1,280.26. This ambiguity could cause the consumer to underpay or overpay the settlement offer, resulting in the defendant unfairly applying the payment to the full balance and continuing to collect on the debt, the complaint says.

The second plaintiff claims she received a letter from Client Services indicating that her “Interest” and “Other Charges” totaled $0.00. According to the suit, the listing of these amounts falsely implies that the defendant has the authority to add interest or additional charges in the future, though it allegedly gives no explanation of what they are or under what conditions they may be added. In reality, the complaint says, “[t]here are no fees that could conceivably be added to [the plaintiff’s] alleged debt,” and the threat of added fees is “an unfair and/or unconscionable method” of debt collection.